Source: cryptoslate
Compiled by: Blockchain Knight
According to a Bloomberg News report on September 23, Tether is in talks with investors to raise $15 billion to $20 billion through a private placement, selling approximately a 3% stake.
This deal could position the cryptocurrency company as one of the most valuable private companies globally, with a valuation of approximately $500 billion.
This would place it on par with OpenAI and Elon Musk's SpaceX in terms of private company valuations.
In comparison, as of September 23, its publicly-traded competitor Circle had a market capitalization of approximately $30 billion.
A person familiar with the matter cautioned that these figures represent the maximum targets, and the final numbers could be significantly lower.
According to sources not authorized to speak publicly about the matter, the discussions are still in the early stages, and details may change. It is understood that Cantor Fitzgerald (a leading global financial services firm known for its expertise in institutional equity, fixed-income sales and trading, investment banking, and real estate services) is acting as the lead advisor for this potential transaction.
Tether's financing discussions coincide with the company's attempts to re-enter the U.S. market under Trump's pro-cryptocurrency policies. The company recently announced plans to launch a stablecoin under U.S. regulation and appointed a former White House crypto official, Haynes, to lead its U.S. operations.
Tether has been avoiding the U.S. market following regulatory conflicts, including a 2021 settlement where the company paid $41 million to resolve allegations of misrepresenting its reserves.
The stablecoin issuer reported a Q2 profit of $4.9 billion, with CEO Paolo Ardoino claiming a profit margin of 99%. However, Tether's financial disclosures do not meet the reporting standards required for public companies.
In recent weeks, potential investors have visited a data room to assess participation in the financing, and sources expect the deal to be completed before the end of the year.
The transaction would involve new equity, rather than the sale of shares from existing investors. This potential valuation represents a remarkable achievement for the lightly regulated cryptocurrency industry.
